A U.S. grand jury in Baltimore yesterday indicted the five employes of the U.S. Department of Health and Human Services charged earlier this week with the computer theft of $30,000 intended as salaries for Public Health Service doctors.
A spokesman for HHS said the security system designed to detect fraud in the payroll computer at the Parklawn Building in Rockville quickly helped investigators to pinpoint how the theft occurred.
The $30,000 was electronically diverted from the March payroll tapes into the defendants' accounts at four Maryland banks, according to Richard McGowan, a spokesman for the inspector general's office of HHS. He said a security arrangement between HHS and local banks led to the discovery of the deposits and to the arrest of the suspects within two weeks of the transfer of funds.
The investigation began when two doctors complained that their salaries had not been deposited in their accounts. McGowan said his office, the Secret Service, and police departments in Montgomery and Prince George's counties cooperated in uncovering three unlawful entries on the March computer payroll tapes.
James E. Grove, 35, of 3360 Huntley Square Run, Temple Hills, a computer program analyst at HHS, was indicted on 14 counts, including making false statements to and keeping false records for the U.S. government.
Henry G. Wood, 31, of 3042 Monroe St. NE; Joseph F. Washington, 38, of 5701 Fisher Rd., Temple Hills; Casandra D. Olds, 24, of 3969 Warner Ave., Landover, and Predia D. Syson, 21, of 3423 Eastern Ave., Mount Rainier, were indicted on charges of making false statements and keeping false records.
All five also were indicted on charges of conspiracy to defraud the government and with falsifying records used in a computer transfer of funds.